In a brief essay, describe the three types of competitive strategies that firms use to achieve competitive advantage. Support your answer with examples of organizations that currently use each of the strategies

What will be an ideal response?

Answer: The three forms of competitive strategies are cost leadership, differentiation, and focus. Cost leadership means offering the lowest prices and/or emphasizing low costs and efficiency as a source of competitive advantage. Walmart is an example of a company pursuing a cost leadership strategy. Differentiation means emphasizing a source of difference between a company and its competitors. The differential advantage becomes the source of competitive advantage. Target follows a differentiation strategy by stressing the sale of more upscale brands than Walmart. A focus strategy means that a company pursues a small niche in the market place. Ferrari follows this strategy by offering a product that customers can get no other way.